Claims for Australia bushfires to rise, losses so far about $93 million

Insurance losses for 855 claims filed as of noon on Monday related to bushfires blazing in Australia are pegged at more than $93 million, the Insurance Council of Australia (ICA) has noted in a statement.

Western Australia is facing a high bushfire risk, with many regions experiencing severe conditions, council CEO Rob Whelan says.

“Bushfires in New South Wales (NSW) over the past five days have destroyed several hundred properties, with insurance losses of $93 million and climbing,” Whelan says. All figures are in Australian dollars.

ICA reports the bushfires serve as a reminder to prepare.

“This is a timely reminder to West Australians of the need to prepare their own properties for a high risk of bushfires this spring and summer,” Whelan points out.

“It’s important for everyone in the community to understand what they can do to prepare for disasters. Every effort, no matter how small, can help save lives and secure property,” he suggests.

ICA notes that this includes having households and businesses ensure their insurance is up to date and taking steps to protect property. Among other things, property owners can do the following:

• move woodpiles or flammable materials away from the property;
• cut back grass, shrubs and trees around the property, and clear dry leaves from gutters;
• review the home and contents policy to ensure it is up to date and to know what is covered and excluded; and
• review the sum insured to confirm it matches the value of the home and contents.

Western Australian “has already experienced some small bushfires in the past few weeks. The large fuel loads in many parts of the state, coupled with anticipated warmer days and nights, means a difficult bushfire season is likely,” says Whelan.

On Monday, ICA sent a team of disaster specialists to the Springwood recovery centre to help bushfire policyholders with questions about their insurance claims.

Insurance assessors had started reviewing claims and were expected to continue to assess damage once emergency services granted access to affected areas. The situation in the Blue Mountains remained uncertain, with fires still raging and more properties potentially vulnerable, the council noted at the time.

Overall, ICA reports that catastrophes since the beginning of 2010 have caused billions of dollars of damage across Australia and insurance losses of more than $8.8 billion.

Australian bushfire catastrophes and insurance losses for 2013 include the following: NSW, various regions, Oct.17 to ongoing: $93 million; NSW, Coonabarabran, Jan. 13 to 19: $35 million; and Tasmania, Dunalley area, Jan. 4 to 10: $79.2 million.

Overall, ICA reports that catastrophes since the beginning of 2010 have caused billions of dollars of damage across Australia and insurance losses of more than $8.8 billion.